Daybreak
Why Cleartrip could learn a thing or two from old school travel agents
Tue Jun 11 2024Description
This episode explores the challenges faced by Clear Trip, an online travel aggregator acquired by Flipkart. Despite the acquisition, Clear Trip has struggled financially and deviated from successful travel agent strategies. The episode highlights the importance of industry expertise and the need for a long-term approach in the travel industry.
Insights
Clear Trip's Struggles
Clear Trip has faced financial difficulties despite being part of the online travel aggregator industry.
The Flipkart Acquisition
Flipkart acquired Clear Trip for $40 million, significantly lower than its previous valuation.
Challenges Faced by Clear Trip
Clear Trip's struggles can be attributed to a mix of short-term vision and a lack of travel industry expertise.
Clear Trip's Focus on the Hotel Business
Clear Trip is focusing on the hotel business as a potential turnaround strategy.
The Need for Industry Expertise
To revive Clear Trip, Flipkart needs to prioritize industry knowledge and build strong relationships.
Chapters
- The Evolution of Travel Planning
- Clear Trip's Struggles
- The Flipkart Acquisition
- Challenges Faced by Clear Trip
- Clear Trip's Focus on the Hotel Business
- The Need for Industry Expertise
The Evolution of Travel Planning
00:04 - 01:26
- In the past, mom and pop travel agencies took care of all aspects of vacation planning.
- Today, online travel aggregators like Make My Trip and Clear Trip have replaced traditional travel agencies.
- Successful online travel aggregators and travel agents share a deep understanding of the travel industry.
Clear Trip's Struggles
01:26 - 02:35
- Clear Trip has been facing financial difficulties despite the success of other online travel aggregators.
- Flipkart acquired Clear Trip in 2021 with hopes of turning it around.
- However, Clear Trip may have strayed too far from the strategies that made traditional travel agents successful.
The Flipkart Acquisition
03:24 - 04:03
- Flipkart acquired Clear Trip for $40 million, a significant decrease from its previous valuation.
- Flipkart saw an opportunity to tap into the travel needs of its online user base.
- The acquisition made sense at the time, but Clear Trip's losses have since increased.
Challenges Faced by Clear Trip
04:31 - 07:03
- Clear Trip's struggles can be attributed to a mix of short-term vision and a lack of travel industry expertise.
- Under Flipkart's management, Clear Trip adopted a hyper growth playbook with lofty employee targets and flashy advertising campaigns.
- However, this approach did not lead to long-term success and Clear Trip became overly reliant on discounts and deals.
Clear Trip's Focus on the Hotel Business
08:57 - 09:44
- Clear Trip is now doubling down on the hotel business as a potential turnaround strategy.
- The unorganized hotel sector offers better profit margins compared to airlines.
- However, Clear Trip has struggled to offer the right inventory at the right price.
The Need for Industry Expertise
10:37 - 11:19
- To revive Clear Trip, Flipkart needs to prioritize industry knowledge and build strong relationships.
- Relying solely on e-commerce tactics like flashy ads and discounts is not enough.
- Clear Trip's leadership changes and departures have further complicated its turnaround efforts.